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More than 5 million people become millionaires despite the pandemic

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The coronavirus pandemic has caused misery and economic damage around the world, but it has also been a boon for the rich, with an estimated $ 5.2 million becoming millionaires last year while the number of those worthwhile at least $ 50 million has increased by nearly a quarter.

A Credit Suisse report found that global global wealth accumulated by households will grow by about $ 28.7 billion by 2020 when central banks flood the financial markets with bargain money, inflating asset prices.

Higher valuations of assets and residential property have raised households ’net worth – assets, including property, less debt – to about $ 418.3 billion. The increase was equivalent to an increase of 4.1 percent on a constant currency basis – only slightly lower than the annual average of the last two decades even when the world economies struggled with the health crisis and the restrictions of block.

“The contrast between what is happening to household wealth and what is happening in the wider economy can never be closer,” the Credit Suisse report said. He found that the rich benefited the most from a political response that inflated assets, with the gap between rich and poor widening in most countries.

The combined wealth of individuals with a net worth of at least $ 1 million had grown nearly fourfold from 2000 to $ 191.6 billion, while their share of global wealth rose from about 35 percent to 46 percent. one hundred.

An estimated 2.9 billion people – equivalent to 55 percent of all adults – meanwhile had less than $ 10,000 in net worth. “The wealth gap between adults will widen by 2020 for the rest of the world and even in most countries,” said the paper, co-authored by economists Anthony Shorrocks, James Davies and Rodrigo Lluberas.

The study estimated that there were $ 56.1 million worldwide by the end of 2020, up from $ 5.2 million from a year earlier. About a third of the nine millionaires come from the United States.

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While about 90 percent of millionaires had a net worth of less than $ 5 million, it is estimated that 7 million had more than that amount. At the highest point, 215,030 had a net worth of more than $ 50m – in addition to the 173,620 recorded a year earlier.

“That would be very high growth every year, but it is particularly impressive in a year that is experiencing social and economic turmoil,” the authors wrote. “The nature of the political response to the pandemic has certainly been a major influence.”

Millionaires have been rare in India, Indonesia and Russia, at about one per thousand adults, and also relatively rare in China, at one in 200. This compares with 8% of the population in the United States and 15% in Switzerland. . Credit Suisse’s methodology included housing wealth and investable assets.

Countries severely affected by coronavirus were among those that recorded the largest expansion of households ’net worth. The gain was greatest in North America and Europe, where total wealth grew about 10 percent, the study found.


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